Propfund 2 shortlisted properties

Share in Germany’s No.1

Residential Property Portfolio 2012

2012 Propfund Germany 2 GmbH & Co. KG

Purchase price: € 536.500 (Renovation: € 140.000) Rental income: € 68.868 Yield: 10,18 % Sqm: 1.084 No. of units: 11 Building Year: 1900 Refurbished: 2012 Mortgage: 102% LTV

Reserved Property

Propfund Germany 2 has reserved a residential apartment block consisting of 9 apartments and 2 commercial units in the main shopping street in Freiberg close to Dresden. The property is very attractive to tenants as they are in the direct centre of Freiberg. Supermarkets, restaurants and all necessary amenities are in direct vicinity of the building. 102% LTV financing has been agreed with the Sparkasse Freiberg for a term of 25 years with fixed interest rates of 3.95% for 10 years with an annual capital repayment of 2%. All the units have been completely refurbished in the interior which makes them very attractive to tenants as does the size and layout. The exterior of the building requires refurbishment immediately after purchase. A rental yield of over 10% and a square meter price of 624 € are the unbelievable facts of this Propfund investment! Our due diligence results are, that Freiberg is in the catchment area of Dresden and has a very stable property market. There was only one comparative offer in the vicinity of our building for 1.105 €/m²! It has been agreed with the vendor that a purchase contract will be signed at the end Mai 2012.

Propfund Equity: €192.406 (Includes cost of renovation)

Freiberg

Complete new refurbished

Yield over 10 %

Offers in the area up to 1.105 €/m².

We are purchasing for 624 €/m²

Over years no vacancy

Solid long term tenants

Catchment area of Dresden

Main shopping street

2012

Propfund Germany 2 GmbH & Co. KG

Properties shortlisted for acquisition

Summary Shortlist


Portfolio No. Name, location Purchase price Rental Yield Propfund Equity

Portfolio 1a Berlin- Spandau, Eckschanze strasse € 1,550,000.00 7.59% € 577,017

Portfolio 1b Berlin- Reinickendorf € 2,285,000.00 7.39% € 709,109

Portfolio 2 Berlin Buckow € 1,700,000.00 7,69% € 701,940

Portfolio 3 Berlin- Spandau, Fieldstrasse € 1,583,000.00 8,17% € 623,930

Portfolio 4 Minden € 3,100,000.00 7,96% € 981,920

Portfolio 5 Dresden € 6,600,000.00 7,61% € 1,977,620

2012

Location map – Berlin properties Propfund Germany 2 GmbH & Co. KG

Berlin – Spandau, Eckschanze Strasse

Purchase price: € 1,550,000 Rental income: € 117,672 Yield: 7.59% Sqm: 1,578 No. of units: 29 Car spaces: 24 Building Year: 1976 Mortgage: 77% LTV

2012

Portfolio 1a

The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.59% for this project in Berlin is a clear indication of the excellent price (purchase factor 13.17). The deal is subject to acquiring a sister project in Berlin- Reinickendorf. Supermarkets, restaurants and all necessary amenities in the centre of Spandau are only 200metres away. 77% LTV financing has also been agreed with IBB Bank for a term of 34 years with fixed interest rates of 3.43% for 10 years and annual capital repayment of 1.5% per annum.

Equity: €577,017


Following a study of the government rental database (Mietspiegel), results show that the average rental in the area is 6,61euro/sqm where the actual average in this project is 5,98euro/sqm as the projects in this condition are in greater demand and tenants will pay a little more for rent than in other buildings. It is also important to note that new tenants with new contracts could expect to pay 6,81euro/sqm which also shows significant potential for future growth.

Offers in the area selling up to 1.370 €/m².


No refurbishment required

Only 1500 m from the center of Spandau

with a big shopping center

Multiple exit strategy options due to low

purchase price

Airport Tegel will closed in June this year, so this area improve dramatically and become even more attractive for tenants and home owners. New tenants with new contracts pay 6,99 €/m² so there is a lot of potential to grow the rental income in the future. The average purchase price in this area is approximately 1.355 €/m². We are aware on only one other building for sale in the vicinity that requires refurbishment which is for sale for 1470 €/m². We have an opportunity to purchase this project for only 980 €/m². The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.39% for this project in Berlin is a clear

Portfolio 1b


indication of the excellent price we have The higher than average rental yield of 7.39% for this project in Berlin is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 13.53). The deal is subject to acquiring a sister project in Berlin- Spandau. 83% LTV financing has also been agreed with IBB Bankfor a term of 34 years with fixed interest rates of 3.44% for 10 years and annual capital repayment of 1.5% per annum.

Only 100m to the main street of

Reinickendorf.

The roof was replaced in 1996 and new

roof top apartments developed.


Parking spaces in the courtyard

Berlin – Reinickendorf, Amendestrasse

Purchase price: € 2,285,000 Rental income: €168,945 Yield: 7.39% Sqm: 2,329 No. of units: 35 Car spaces: 18 Building Year: 1976 Mortgage: 77% LTV

Equity: €709,129


Portfolio 2

An rare opportunity to acquire a small middle class project only 11 minutes to the new BBI International airport in Berlin. It is a very quite neighbourhood as it is not in any of the flight paths from the airport. The ground plan of each apartment is like single family homes. Huge investment potential with this project as we have sold individual properties in this area for over 1,700€/m² and we have an opportunity to purchase this entire project for only 1,074€/m². Following a study of the government rental database (Mietspiegel), results show that the average rental in the area is 7,50€/m² where the actual average in this project is 6,80€/m²

Berlin – Buckow

Equity: €701,940


as projects in this condition are in greater demand and tenants will pay a little more for rent than in other buildings. The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.69% for this project in Berlin is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 13.00). 70% LTV financing has also been agreed with Hypovereinsbank (Unicredit) for a term of over 34 years with fixed interest rates of 3.7% for 10 years and annual capital repayment of 1.5% per annum.

Excellent location close to new BBI

International Airport

Built in 1985 with modern architecture

Huge opportunity to develop the

rental income and resale price of

the portfolio


Berlin – Spandau, Feldstrasse


An opportunity to acquire a residential apartment block consisting of 25 apartments with underground car parking in a popular residential area in Berlin-Spandau. The portfolio is being sold off-market by an existing property fund. The excellent rental yield of 8.17% for this project in Berlin is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 12.23). The properties are very attractive to tenants as they have good access to all public transport and only 20 minutes to reach the city centre. Supermarkets, restaurants and all necessary amenities in the centre


Portfolio 3

Equity: €623,930

of Spandau are only 1400 metres away. 77% LTV financing has also been agreed with IBB Bank for a term of 34 years with fixed interest rates of 3.43% for 10 years and annual capital repayment of 1.5% per annum. No refurbishment required and new bathrooms have been installed. This project is typical for institutional investment due to the steady income from long term tenants, higher than average rental yield and multiple resale options due to the size of the portfolio and the small amount of private equity required for the purchase..

Only 1.500 m from the center of Spandau

with a big shopping center

Multiple exit strategy options due to low

purchase price

Offers in the area selling for average of

factor 15

We buy for factor 12,23

Location map - properties outside Berlin


2012 2012 Propfund Germany 2 GmbH & Co. KG

Purchase price: € 3,100,000 Rental income: € 246,660 Yield: 7.96% Sqm: 2,977,00 No. of units: 35 Car spaces: 67 Building Year: 1900 Mortgage: 7 9% LTV

Portfolio 4

An opportunity to acquire a prime real estate portfolio consisting of 35 residential apartments and one commercial unit with a AAA tenant. The complete house has been fully refurbished in the last 2 years. The higher than average rental yield of 7.96% for this project in Minden is a clear indication of the excellent price we have managed to secure with the existing vendors (purchase factor 12,57. 79% LTV financing has also been agreed with the Sparkasse Minden with a term of 25 years with fixed interest rates of 3.7% for 10 years and annual capital repayment of 2,0% per annum. Following the research of the rental market in

Minden

Equity: €981,920

in Minden tenants pay up to 6,33 €/m² for refurbished apartments. The actual we have in our project is an average of 5,00€/m² so we have great potential for growth even on todays prices. Considering we are generating a rental yield of nearly 8% with an average rental price per tenant 20% below the current market is a real sign of the great price for this building and its true potential for growth over the next 10 years. It has been agreed with the vendor that a purchase contract will be signed at the end of May 2012. Minden is a town of about 83,000 inhabitants in the north-east of Germany.

Brand new rental contracts

In the direct centre of Minden

Multiple exit strategy options due to

low purchase price

Building permission for a new building

with additional 679 m²Living space

2012

Purchase price: € 6,600,000 Rental income: € 502,000 Yield: 7.61% Sqm: 7,461,00 No. of units: 122 Car spaces: 18 Building Year: 1930 Refurbished: 2002 Mortgage: 80% LTV

Portfolio 5

The portfolio is being sold off-market by an existing property fund. The higher than average rental yield of 7.61% for this project in Dresden is a clear indication of the excellent price (purchase factor 13.14). Supermarkets, restaurants and all necessary amenities are in vicinity of the building. 80% LTV financing has also been agreed with Sparkasse Dresden for a term of 34 years with fixed interest rates of 3.88% for 10 years with an annual capital repayment of 1.5%. The actual average rent in this project is 5,60€/m² and it is important to note that new tenants with new contracts could expect to pay

Propfund Equity: €701,940

Dresden

Equity: €1,977,620


5,96€/m² which also shows significant potential for future growth. Since the last 10 years the number of inhabitants has grown by over 10% and in the future there will be a great demand for living space. This type of building is perfect for reselling as individual units to German investors which could be a very profitable exit strategy. Our research found an actual offer from the DKB Bank in Dresden. Same type of building / one apartment 110.000 € / 66,17 sqm => 1.662 €/sqm compared to 884/sqm which is what we are buying the entire project for.

Growing city => 10 % last 10 years

Perfect exit with a big profit

Offers in the area selling apartments

for 1.662€/m².


Documents

Propfund 2 shortlisted properties